FTSE for Friday: UK index awaits Wall Street's return
25th November 2022 07:31
by Alistair Strang from Trends and Targets
The UK market's six-week rally continues, although the absence of Wall Street at the end of this week has stunted growth. Independent analyst Alistair Strang gives his view of prospects.
There have been many days when we feel anger at the way the markets behave. This week is certainly proving a perfect example, very little actually happening because of Thanksgiving in the US, followed by a day shopping.
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However, despite the US teetering on the edge of festive malaise, the FTSE 100 is still trying to head upward, albeit in tiny increments.
Currently, it appears 7,509 points should provide a solid trigger level, one capable of projecting the index to a tame 7,535 points next.
If triggered, the tightest stop is massive, requiring 7,423 points. The reason behind this is quite extraordinary; our secondary, longer-term target level works out at 7,777 points!
Our converse scenario suggests weakness below 7,423 threatens reversal to an initial 7,406 points with secondary, if broken, working out at 7,389 points.
We suspect some near-term reversals, until Wall Street gets its head back in order.
Past performance is not a guide to future performance
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
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